The Association of Mutual Fund in India (AMFI) on Tuesday conducted its 25th annual general meeting (AGM), where SEBI Chairman Ajay Tyagi said that the confusion on multi-cap funds is unfortunate.
Clarifying that mutual funds are not being forced to buy smallcaps, Tyagi said that the schemes must be true-to label and have a benchmark. He added that AMFI’s recommendations of multi cap funds are being examined.
Tyagi mentioned that SEBI will constitute a working group for liquidity risk management of open ended debt funds. He pointed out that an expert group will be set up shortly in consultation with AMFI.
The SEBI chairman mentioned that MFAC is examining the ‘backstop’ idea for corporate bonds. In case of crisis, illiquidity in the market, backstop entity can buy bonds.Watch the video for more.